HB 590 - Retirement systems; veterans; service credit

Georgia House of Representatives - 1995/1996 Sessions

HB 590 - Retirement systems; veterans; service credit

Page Numbers - 1/ 2/ 3/ 4
Code Sections - 47-1-60/ 47-1-61/ 47-1-62
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1. Cummings  27th

House Comm: Ret / Senate Comm: Ret / House Vote: Yeas 160 Nays 0 Senate Vote: Yeas 48 Nays 0 ---------------------------------------- House Action Senate ---------------------------------------- 2/3/95 Read 1st Time 1/25/96 2/6/95 Read 2nd Time 2/5/96 1/22/96 Favorably Reported 2/2/96 Sub Committee Amend/Sub 1/24/96 Read 3rd Time 2/7/96 1/24/96 Passed/Adopted 2/7/96 CS Comm/Floor Amend/Sub 3/19/96 Sent to Governor 4/1/96 Signed by Governor 656 Act/Veto Number W/F Effective Date ---------------------------------------- Code Sections amended: 47-1-60, 47-1-61, 47-1-62
HB 590 LC 21 3546S ______________________________ offers the following substitute to HB 590: A BILL TO BE ENTITLED AN ACT 1- 1 To amend Chapter 1 of Title 47 of the Official Code of 1- 2 Georgia Annotated, relating to general provisions relative 1- 3 to retirement and pensions, so as to provide that veterans 1- 4 returning to public employment from certain military service 1- 5 shall be entitled to establish service creditable toward 1- 6 retirement for such military service; to define certain 1- 7 terms; to provide for employee contributions; to provide for 1- 8 employer contributions; to provide for retirement systems of 1- 9 funds which do not require employer contributions; to 1-10 provide for matters relative to the foregoing; to provide 1-11 conditions for an effective date and automatic repeal; to 1-12 repeal conflicting laws; and for other purposes. 1-13 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA: SECTION 1. 1-14 Chapter 1 of Title 47 of the Official Code of Georgia 1-15 Annotated, relating to general provisions relative to 1-16 retirement and pensions, is amended by inserting at the end 1-17 thereof the following: "ARTICLE 5 1-18 47-1-60. (Index) 1-19 As used in this article, the term: 1-20 (1) 'Creditable service' means service with a public 1-21 retirement system or fund used in the same manner as 1-22 actual service in the computation of all rights and 1-23 benefits. 1-24 (2) 'Public retirement system or fund' means a public 1-25 retirement system or fund created by this title. 1-26 (3) 'Qualified returning veteran' or 'returning veteran' 1-27 means a member of a public retirement system or fund 1-28 whose employment which qualified him or her for such 1-29 membership was interrupted by a period of qualified 1-30 service and who returns to such employment in a manner -1- (Index) LC 21 3546S 2- 1 sufficient to protect his or her reemployment rights as 2- 2 prescribed by Public Law 103-353, the federal Uniformed 2- 3 Services Employment and Reemployment Rights Act. 2- 4 (4) 'Qualified service' means voluntary or involuntary 2- 5 service with one of the uniformed services, including 2- 6 active duty, active duty for training, initial active 2- 7 duty for training, inactive duty training, full-time 2- 8 National Guard duty, and any period during which a 2- 9 member is absent from employment for the purpose of an 2-10 examination to determine his or her fitness to perform 2-11 such duty. 2-12 (5) 'Uniformed services' means the United States Army, 2-13 Army Reserve, Army National Guard, Navy, Navy Reserve, 2-14 Marine Corps, Air Force, Air Force Reserve, Air National 2-15 Guard, Coast Guard, the commissioned corps of the Public 2-16 Health Service, and any other category of persons 2-17 designated by the President of the United States in time 2-18 of war or emergency. 2-19 47-1-61. (Index) 2-20 Any qualified returning veteran shall be eligible to 2-21 establish creditable service with his or her retirement 2-22 system or fund for not more than five years of qualified 2-23 service by complying with the provisions of this article; 2-24 provided, however, that such five-year period shall be 2-25 extended by any period of mandatory service imposed by the 2-26 uniformed service recognized by paragraph (4) of 2-27 subsection (C) of Section 4312 of federal Public Law 2-28 103-353, the Uniformed Service Employment and Reemployment 2-29 Rights Act of 1994. 2-30 47-1-62. (Index) 2-31 (a) Any qualified returning veteran desiring to establish 2-32 creditable service for a period of qualified service shall 2-33 so notify the board of trustees of the public retirement 2-34 system or fund not later than six months from the date he 2-35 or she resumes employment. The board of trustees shall 2-36 calculate the amount of employee or member contribution 2-37 which the returning veteran would have paid if he or she 2-38 had been a member of the system or fund during the period 2-39 of qualified service. If such contribution is based on 2-40 the member's salary, the returning veteran's salary shall 2-41 be deemed to be the rate the member would have received 2-42 but for the period of qualified service or, if 2-43 determination of such rate is not reasonably certain, the -2- (Index) LC 21 3546S 3- 1 member's average rate of compensation during the 12 month 3- 2 period immediately preceding the period of qualified 3- 3 service or such lesser time as the member was employed. 3- 4 The returning veteran shall repay the amount so calculated 3- 5 as his or her employee or member contribution, which 3- 6 payment must be completed not later than three times the 3- 7 length of qualified service or five years, whichever 3- 8 period is shorter, computed from the date the returning 3- 9 veteran resumes employment. The board of trustees of any 3-10 public retirement system may provide by rule for computing 3-11 the amount of creditable service on payment of less than 3-12 the total amount of employee contributions. 3-13 (b)(1) At the time a qualified returning veteran applies 3-14 for creditable service as provided in Code Section 3-15 47-1-61, the board of trustees of the public retirement 3-16 system or fund shall compute the actuarial value of the 3-17 creditable service to be granted. 3-18 (2) The board of trustees of a retirement system or fund 3-19 which requires employer contributions shall notify the 3-20 employer of the returning veteran of the actuarial 3-21 value, less the amount of employee contribution. The 3-22 employer shall pay such amount to the retirement system 3-23 over the same period of time allowed for the returning 3-24 veteran to pay the employee contributions; provided, 3-25 however, that an employer shall not be required to make 3-26 any payment until the fiscal year following the year 3-27 such notice is given. 3-28 (3) If the actuary employed by a retirement system or 3-29 fund created by this title which does not require an 3-30 employer contribution certifies that the system or fund 3-31 cannot provide the creditable service requested by one 3-32 or more returning veterans and retain its actuarial 3-33 soundness, no discretionary benefit increases shall be 3-34 granted, and the board of trustees of such system or 3-35 fund shall notify the Governor and chairpersons of the 3-36 Senate and House Committees on Retirement, providing a 3-37 full explanation of the amount of funds necessary to 3-38 return the system or fund to actuarial soundness." SECTION 2. 3-39 This Act shall become effective on July 1, 1996, only if it 3-40 is determined to have been concurrently funded as provided 3-41 in Chapter 20 of Title 47 of the Official Code of Georgia 3-42 Annotated, the "Public Retirement Systems Standards Law"; -3- (Index) LC 21 3546S 4- 1 otherwise, this Act shall not become effective and shall be 4- 2 automatically repealed in its entirety on July 1, 1996, as 4- 3 required by subsection (a) of Code Section 47-20-50. SECTION 3. 4- 4 All laws and parts of laws in conflict with this Act are 4- 5 repealed. -4- (Index)

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